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Programmatic Spending Comes To Africa

01 December 2016
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Widespread adoption of mobile phones has opened up the opportunity for programmatic advertising in Africa.

 

“The mobile advertising space is still in its infancy in terms of actual numbers, but it has huge potential,” said Anindya Ghose, a professor at the NYU Stern School of Business who has studied the global mobile marketplace.

Chinese companies like Xiaomi and Huawei are flooding the African market with cheap smartphones, enabling a shift from the feature phones that currently dominate, Ghose said.

“In the next couple of years, you will see penetration for smartphones shooting through the roof, and programmatic following,” he said. For now, market tracking is limited. No countries in Africa, for example, make Zenith Media’s programmatic forecast, which covered 46 of the top programmatic markets this year.

Dochase Media, a Nigerian ad network turned self-service programmatic platform, serves ads across Nigeria, Ghana and Kenya, where smartphone and internet adoption are highest.

“The African market is unexplored,” said Dochase founder Chibuike Goodnews. “In a few years, you could have 700 million [African] people accessing the internet. We are investing and positioning ourselves to be a major service and major go-to for African traffic.”

To make it easier for global advertisers to buy inventory in Africa, Dochase is hooking up as either an SSP or exchange to platforms outside the continent, like Criteo, smartyAds, Atomx and PLYmedia. Dochase also plans to connect to Bidswitch, which will connect its demand to multiple DSPs.

“There are a lot of foreign buyers that want to buy traffic in Africa,” Goodnews noted, adding that he carefully vets partners for quality due to “bitter experiences” with partners who served malicious ads.

On the local side, the platform has attracted advertisers like Frakem, an ecommerce site based in Nigeria that delivers building materials to busy professionals who don’t have the time to shop in person, according to Frakem COO and co-founder Festus Nwagbo.

Nwagbo uses programmatic for familiar reasons: scale and efficiency.

“There are hundreds of media houses,” he said. “It’s more cost-effective to go to the platform, where we can target categories of individuals.”

Plus, he can monitor results in real time and adjust the campaign parameters, making his buys more flexible than in the past.

Frakem only uses one other form of advertising: Facebook. In Nigeria, the internet community is paying close attention to the social network, which has set its sights on the continent. CEO Mark Zuckerberg visited earlier this year to tout its internet-beaming drones.

But Frakem limits its Facebook spend because of cost, which Nwagbo attributes to exchange rates. “Dochase is cheaper for us, and the content is in Africa.”

Despite Facebook’s presence in Africa, Dochase’s Goodnews doesn’t envision too much competition from foreign ad tech, as he says homegrown tech makes the most sense for the current market: “For tech to be relevant in Africa, it has to be tailored to the specific behavior and expectations and browsing patterns with people in Africa.”

Goodnews doesn’t see South Africa-based publisher co-op SouthernX, founded last year, as much of a competitor. Although the co-op has expanded outside of its founding country, Dochase said its programmatic platform offers more types of inventory in Nigeria and Kenya than the programmatic competitor.

On the supply side, Dochase has connected to hundreds of media houses in the countries it serves, and Goodnews is striking deals with telcos, a huge source of ad inventory in the country. To keep costs for phone access down, many phones come with ads on the lock screen, for example.

Local advertising budgets are low by European or US standards. For example, in Frakem reported revenue of $50,000 in its first year as an ecommerce company.

But local companies like Dochase and foreign ones like Facebook are arriving early to a growing opportunity. With Africa leapfrogging over desktop and going straight to mobile, problems like cross-device matching aren’t as much of an issue. Consumers are comfortable making purchases over their phones, since many never shopped using desktop computers.

Ecommerce companies like Frakem stand to benefit from this explosion and will ramp up advertising spend as more sales flow through mobile.

“Because [mobile users in Africa] are used to doing commerce on cell phones, they will do commerce on smartphones,” Ghose added. “I think it’s a huge gold mine waiting to be tapped.”...Read More

 

  • Africa Industrialization Week 2018 (AIW 2018) 18th - 23rd Nov 2018, by African Union Commission

    Africa Industrialization Week 2018 (AIW 2018) 18th - 23rd Nov 2018, by African Union Commission

    MEDIA ADVISORY

    AFRICAN UNION TO ORGANISE THE AFRICA INDUSTRIALIZATION WEEK 2018 (AIW 2018)

    INVITATION TO REPRESENTATIVES OF THE MEDIA

    What: AFRICA INDUSTRIALIZATION WEEK 2018 (AIW 2018)

    When: Sunday 18th – Friday 23rd November 2018

    Where: AU Headquarters, Addis-Ababa, Ethiopia

    Who: Organized by the Department of Trade and Industry of the African Union Commission (AUC)

    JOURNALISTS ARE INVITED TO ATTEND AND COVER THE OPENING CEREMONY AT THE AFRICAN UNION HEADQUARTERS ON 18TH NOVEMBER 2018

    The African Union Commission (AUC) plans to organize an Africa Industrialization Week (AIW) to be held from the 18th to the 23rd November 2018 at the AUC Headquarters in Addis Ababa, Ethiopia. The afternoon of 18th November 2018 is dedicated for the Official Opening Ceremony by the H.E Paul Kagame, Chairperson of the African Union and President of the Republic of Rwanda, High Level dignitaries from Member States, RECs, United Nations Agencies, Diplomatic Corps and Private Sector will attend the Opening session.

    The commemoration of the Africa Industrialization Day (AID2018) to be organized by the Department of Trade and Industry of the African Union Commission in partnership with the NEPAD Agency, United Nations Industrial Development Organization (UNIDO), the United Nations Economic Commission for Africa (UNECA), Regional Economic communities (RECs) and Development Partners. The Theme for the AID2018 and AIW2018 is: “Promoting Regional Value Chains in Africa: A pathway for accelerating Africa’s structural transformation, industrialization and pharmaceutical production”.

    Given the importance of Industrial development as an engine for inclusive and sustainable development, the AIW2018 seeks to enhance consciousness and understanding of the opportunities and challenges associated with the industrialization drive on the continent. This is meant to mobilize African leaders, policy makers, and private sector and development cooperating partners to enhance dialogue on the pan-African industrialisation agenda, with emphasis on how development of regional value chains can a be a major catalyst towards boosting industrial production capacity, and hence accelerated industrialization for the continent as we gear up on the implementation of the Africa Continental Free Trade Area.
    The AIW2018 will also among other things, promote the implementation of the Accelerated Industrial Development of Africa (AIDA), the Pharmaceutical Manufacturing Plan for Africa (PMPA), the SME Strategy, the Boosting Intra-African Trade and the African Continental Free Trade Area and the UN General Assembly's Third Industrial Development Decade for Africa (IDDA III) in the context of Agenda 2063.

    The 1st AU-NEPAD Africa Pharma Conference will be the flagship event of the Africa Industrialization Week (AIW). This event is co-organized by the Department of Trade and Industry, the Department of Social Affairs and the NEPAD agency. It will be held from the 19th to 21st November, 2018 with aim to contribute to efforts to boost local production of essential medicines. The conference will involve all relevant continental institutions, development partners, UN agencies, Member States and the private sector.

    The week will also be commemorated through a series of events which will highlight the progress, achievements, and challenges faced by African governments in developing their industrial sectors. It will also provide a platform for business to business interface, to enhance prospects for developing business partnerships and investment promotion.

    Some of the side events during the week will include:

     Continental Forum on Regional Value Chains and Mobilizing African Manufacturer’s (to support the linkage of Africa Regional Value Chains to the Global Value Supply);
     The Second Symposium on Special Economic Zones (SEZs) and Green Industrialization.
     A Workshop on Africa Enterprise Network, catalyzing SMEs and start-ups productivity;
     A Workshop on Youth Entrepreneurship to reduce migration, Youth and women empowerment in enterprise development; and
     A Workshop on Financing Industrialization.
     EIB-UNIDO Africa Day 2018: sustainable Industrialization in Africa.

    Heads of State and Government, high level representatives of international organizations and senior policy makers from across the continent are expected to participate in the AIW2018.

    Media contact:
    Mrs. Esther Azaa Tankou, Head of Information Division, Directorate of Information and Communication, AU Commission, Tel: +251911361185, E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
    Mr. Patient Atcho, Communication Assistant, Department of Trade and Industry, AUC Commission, Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

    Follow Them on:
    Facebook: https://www.facebook.com/AfricanUnionCommission
    Twitter: https://twitter.com/_AfricanUnion
    YouTube: https://www.youtube.com/AUCommission

  • ATIGS 2018

    ATIGS 2018

    The Pan African Chamber of Commerce and Industry (PACCI) is very pleased to announce our participation as Supporting Organization of the 2018 edition of the Africa Trade & Investment Global Summit (ATIGS).

    The 2018 edition of Africa Trade & Investment Global Summit (ATIGS) is scheduled to be held on June 24-26, 2018 in Washington D.C. ATIGS is a unique high-level conference and trade show, prestigious, biennial business platform designed specifically to promote and facilitate international trade and foreign direct investment in Africa, with attendance projection of over 2,000 participants from more than 70 countries for a three day of networking, markets knowledge sharing, marketing & matchmaking, B2B, G2B, G2G meetings & deal making.

    The event will see the participation of more than 150 speakers, over 160 exhibitors, high-level government delegations, project developers, business leaders, trade promotional organizations (TPOs) and investment promotion agencies (IPAs) from various African countries, and over 350 global investors including pension funds, sovereign wealth funds, private equity and asset management firms. 

    Unlike most talk-shop conferences focused on Africa, ATIGS moves beyond that instead focus on providing first hand face-to-face access to African markets at a one-stop shop by featuring African countries pavilions inside hall one representative companies sourcing for international partners & investments, and government agencies (TPO’s & IPA’s) showcasing the wide range of trade and investment opportunities that are available in their respective countries to connect with companies worldwide looking to expand or establish their business operations in Africa, and global investors with interests in Africa. There will also be Middle East, Europe, U.S.A, Canada, and Asia exhibition/pavilions representing companies & government agencies with interests to engage with Africa.

    For more information and to register follow the link below.

     http://atigs2018.com/eventbrite/

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